This is why I watermarked it:
http://www.youtube.com/watch?v=ebz1Tg-Ftsc
Somebody ripped the gif and reposted it to youtube (without credit) on the first day the ytmnd was uploaded! They were nice enough to put a link back after I emailed them though.

If anyone else is interested, here is my response to randyhuang's question.
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<< randyhuang said on 2009-12-23 11:05:29
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What program did you use to make that? It's so clean and uncompressed.

To create the tentacle rape toolkit, I manually redrew the original "hentai waiting to happen no.2" (a screenshot from paper mario) as vector art, with Illustrator's pen tool, which can be animated easily. I took the different items in the original jpg, and drew them on different layers. The squid monster monster went into the background. The tentacles in the foreground. One tentacle is in its own layer so i can move it around precisely. It's actually sharper than the original since it's vector art!

After Effects can animate everything using keyframes and the animation timeline. To make it jive with the music, I put keyframes at 1/4 intervals on the timeline. So every time it loops, it will go through four visual beats. After inserting the princess, Photoshoped with christmas spirit, I animated her to move in sync with the tentacle's rhythm.

Finally, I always convert the video to GIFs using Photoshop because it has the most control over compression. In this case I disabled dithering, which is normally a no-no. But since it's a cartoon with no gradients, it will compress smaller and have less artifacts.

I played this level today, it reminded me of this site. Also in this technology guy's castle in chapter 3-4, the door to where he's keeping the butterfly held looks a lot like the cuppycake gumdrop loaf of bread.